After a series of declines breaking the important support threshold, investors entered this morning's session in a "confused" mood. Instead of strongly bottom-fishing, many people decided to continue pushing goods to cut losses. Although VN-Index had some rebounds thanks to the positive support of the large pair VIC-VHM, selling pressure still showed no signs of decreasing, causing the market to continue to sink into red.
Market sentiment shows signs of improvement. Demand increased in the afternoon session, helping many stocks narrow downward momentum and reverse to increase in price. At the end of the session, the HoSE table recorded 198 gainers, 48 unchanged stocks and 127 decliners. Although the number of gainers was not completely overwhelming, the VN-Index still increased by nearly 31 points, equivalent to 1.85%, to nearly 1,700 points.
Although increasing points impressively, market liquidity decreased with nearly 863 million shares matched orders, equivalent to a transaction value of nearly 20,000 billion VND. After yesterday's sudden net selling session, foreign investors actively reduced selling pressure. According to statistics, today foreign investors net sold 491 billion VND on the HoSE exchange.
The most positive contributors to today's gaining session are VIC and VHM. These 2 codes alone contributed more than 25 points to increase the index. Meanwhile, GAS is the 3rd most contributing stock to the index, with more than 1.2 points.
Some securities companies recommend that investors continue to be cautious, waiting for the market to form a new balanced zone before making strong disbursement. In this period, investors should take advantage of technical recovery phases to restructure their portfolios, reducing the proportion of stocks that have lost their support zone or show signs of weakening.
If disbursing, only exploratory purchases should be made with a small proportion in stocks with their own story or that have adjusted to a strong support zone, and avoid chasing purchases in recovery phases.
According to experts, the recent plunge did not originate from a single cause, but was the result of many factors at the same time, from external pressure, weakening cash flow to the increasing defensive sentiment of investors.
The stock market is still facing many unfavorable factors. The first is external risks when the global 10% tax policy is about to expire, while the US proposes to impose additional taxes on imports from many economies. This increases concerns about export prospects, capital flows as well as investor sentiment.
In addition, cash flow in the market has weakened since the beginning of the year. When liquidity is no longer abundant and new money sources are limited, just a large enough selling force can create a widespread effect.
Many basic stocks are continuously showing unfavorable information and falling deeply, affecting investors' confidence in the group of stocks that are considered the market's backbone.
The market's balance point will be formed when three conditions converge: valuation to a historical low, gradually decreasing sell-off liquidity and leading stock groups stopping creating new bottoms. At that time, the probability of reversal will be clearer than just relying on a fixed point level of VN-Index.
